Northern Explorations, Ltd. (NXPN)

 

Company: Northern Explorations Ltd. (NXPN.OB) 

Web Site: www.NorexEnergyInc.com

I am excited to announce to announce our new HUGE natural gas pick - NXPN! I think we could see NXPN make a big run starting today and will capitalize significantly from the upcoming rally in natural gas!

Do not waste any time and start researching NXPN immediately before it starts to take off this morning!

NXPN engages in the acquisition, exploration, and development of natural resources currently focused on natural gas in North America. NXPN is devoted to the careful identification and acquisition of high quality opportunities in the natural gas sector. The company plans to provide shareholder value through the assembly of asset and property combinations which will include exploratory promise, ongoing production, in-place infrastructure, growth potential and the ability to offer both s hort term returns as well as significant value over the long term.

NXPN just recently announced that the company completed the execution of a definitive agreement in regards to the "Ozona Gas Project" with Swiss-based resource management corporation Dominus Energy AG! Under the terms of the agreement, NXPN has acquired a 63% Working Interest in the project located near Ozona in Crockett County, Texas. The agreement is based on future commitments whereby Norex will pay 100% of the cost of drilling and completion of the gas wells in exchange for their 63% Working Interest. Under the terms of the underlying agreement with the vendors and royalty holders, NXPN will receive a 47.5% Net Revenue Interest in all natural gas production from the project.

The Ozona project encompasses 9,000 acres and is a well documented and prolific location enjoying the presence of actively established companies such as Chesapeake, Devon, EOG, XTO, and Quicksilver Exploration. NXPN and partners will further detail the program following completion of the requisite documentation which will involve the drilling, completion and tie-in of 20 natural gas wells!

NXPN has already stated that they have commenced drilling, cased, completed and stimulated its first gas well at the Ozona gas project and the well has been producing gas since May 2009 at daily rates of 200 MCF per day already! Estimates of gas reserves associated with this well are approximately 0.5 BCF. The gas is sold under a purchase agreement with Eagle Rock Energy and is currently priced at a bid-week production price of $4.04 per MCF. We all know that natural gas will soon potentially head to much higher levels so think about NXPN's upside potential!

Remember, this initial well is the first of 20 wells that will be drilled and completed on the leased acreage!

NXPN's President Mark Schaftlein stated, "The inclusion of the production well in the purchase package acquired by Norex is a huge boost as it immediately transforms us into a cash flow positive position. We have effectively sidestepped the time line that normally occurs during the development of a first well of a program. Having acquired immediate gas production is a large step forward for the Company."

NXPN also has an interest in two California gas projects in the Central Valley of California. The first well is planned to target seismic data that indicates 50 feet of pay zone thickness at an 8,000 foot depth. If the sands are 100% gas filled and the well is commercially viable, the first well has a projected initial production rate of 5,000 Mcf/day! NXPN believes that the project, if proven to be commercially viable, may represent a venture with an in-situ value of greater than $50 million in contained gas to a majority working interest partner. To learn more about these projects please visit the projects page on the company website.

Furthermore, NXPN has a 44.1% working interest in 72 potential wells in Alberta, Canada. This project expands 11,500 acres and targets one of the few undeveloped gas fields in Alberta. The asset includes:

• One Natural Gas Processing Plant (built in 2004)

• Five Natural Gas Pipelines

• Eighteen Sections of land or 11,500 acres containing recoverable reserves in excess of 8 billion cubic feet

• Three-well farm-in with a Canadian major to bring on-line approximately 2,000 Mcf/day of Natural Gas

Domestic U.S. production of natural gas will assist in breaking the cycle of dependence on foreign oil and help provide clean energy that will reduce the carbon emissions of power plants across the country. NXPN believes that its aggressive focus on natural gas exploration and development will ensure the Company has a role to play in the overall strategy of the domestic industry's growth as part of the new administration's energy policy for the nation.

Right now the crude oil to natural gas ratio is the highest its been since 1992 currently at about 19! Historically it has always returned to 6 which would put natural gas at much higher levels than the current price of about $4. The upside potential for natural gas right now is astronomical if the Crude Oil/Natural Gas ratio returns to historic levels! Additionally, as we near the end of the second quarter, natural gas is entering what has historically been its best quarter of the year. As shown in the chart below, the commodity's average return during the third quarter of the year has been 12.95% with positive returns 63% of the time! We can not miss out on this opportunity! 

I think NXPN and natural gas could see a major run in the near future so don't miss out!

If you have any questions or comments please give us a call during market hours at    1-888-925-8247. Don't forget to help spread the word!

MORE UPDATES TO COME...

 

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